An analysis of certain factors in the consumer use of revolving credit at the retail level

Includes bibliographical references.THE PROBLEM The purpose of this investigation is to analyze certain factors in the consumer use of revolving credit. The major problem is broken down info three sub-problems. The first concerns a review of the development of revolving credit. The second concerns a determination of the relationship between certain economic factors and the use of revolving credit. The third sub-problem is concerned with a determination of the relationship of certain economic factors and the use of revolving credit. PROCEDURE The solution to the first sub-problem concerned with the development of revolving credit required research of a secondary nature. The major authorities in the field of consumer credit were consulted for information. The unpublished documents of X company were also used when deemed necessary. The information obtained was organized into a concise presentation of the development of revolving credit. The major sources are cited so that the reader may refer to the original source for additional information. The second and third sub-problems required research of a primary nature. The revolving credit files of X company were used for this study. The contracts analyzed were obtained by means of a systematic random sample. The data was then tabulated and organized into table form CONCLUSION Revolving credit is one attempt to achieve an all purpose account. The account is designed to permit the customer the option of paying his account in full each month or paying the balance over a period of months. The account is designed to be used for the purchase of any item sold in the store. The service charge is designed to allocate the cost of credit operations to only those customers using a credit account rather than to spread the costs over all customers through the use of higher prices. The typical revolving credit customer uses his account primarily as a charge account. He is in the middle income group, earning between $100 and $150 per week. The revolving credit account appeals primarily to married customers who are middle-aged. The revolving credit customer tends to use credit as his major means of purchasing goods and services. The majority of revolving credit users were former X company credit account users indicating a high degree of customer loyalty.M.S.B.A. (Master of Science in Business Administration